Performance per watt doesn't care where the systems are (on-prem vs cloud) and should track perf/$ (unless perf/$ is mostly determined by subsidies).
Performance per watt doesn't care where the systems are (on-prem vs cloud) and should track perf/$ (unless perf/$ is mostly determined by subsidies).
For instance, the DGX-2 has an MSRP of $399,000 and consumes 10 kW of power [1]. The average commercial electricity cost across the US is about $0.11/kWh [2], so a DGX-2 running at full tilt costs $1.10 an hour in electricity. Thus, a DGX-2 running at 100% utilization for 3 years costs $9,636 in electricity, which is ~2.5% of the cost of the box itself.
Of course, you probably could get DGX-2s for a lot cheaper if you are buying 100 of them, but the acquisition costs are still going to be significant vis-a-vis power costs.
[1]: https://www.anandtech.com/show/12587/nvidias-dgx2-sixteen-v1...